Justin Sun Warns About Ethereum Leverage Issue... "Potential Threat to DeFi Ecosystem"

# TRON Founder Justin Sun Warns of High Leverage Risks in Ethereum Market New York – Justin Sun, the founder of TRON and a cryptocurrency billionaire, has raised concerns over the high leverage in the Ethereum (ETH) market, issuing a warning to the digital asset community. According to U.Today on October 11, Sun took to Twitter to alert users that the high leverage issue could cause a sudden market explosion, potentially inflicting significant losses on the Ethereum network’s protocols and decentralized finance (DeFi) projects. # Rising Leverage Concerns Sun highlighted that both centralized and decentralized exchanges have seen an alarming rise in leverage used in Ethereum transactions. Notably, cases of leveraging up to 50x and even 100x in the options and perpetual futures markets are becoming more prevalent. Such extreme leverage magnifies the risk of large-scale liquidations during sharp market volatility. The risk is further compounded by the extensive use of Ethereum as collateral within DeFi protocols. High leverage usage could trigger massive liquidations if Ethereum prices plummet, leading to enhanced sell pressure and further market declines. # Potential for Market Correction Excessive leverage could lead to heightened funding rates, prompting many traders to increase their short positions. This could negatively impact Ethereum prices and provoke further market corrections. Justin Sun has called on the Ethereum team to address the issue promptly and adjust the leverage levels. Failing which, he warns of even greater market shocks ahead.